Question(s) / Instruction(s):

Acton Company has two products: A and B. The annual production and sales of Product A is 830 units and of Product B is 530 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.6 direct labor-hours per unit and Product B requires 0.5 direct labor-hours per unit. The total estimated overhead for next period is $92,203. The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:

Estimated Overhead Expected Activity

Activity Cost Pool Costs Product A Product B Total

Activity 1............. $14,502 530 630 1,160

Activity 2............. $64,950 2,530 530 3,060

General Factory... $12,751 498 265 763

Total................... $92,203

(Note: The General Factory activity cost pools costs are allocated on the basis of direct labor-hours.)

The predetermined overhead rate under the traditional costing system is closest to: (Round your final answer to two decimal places.)